Because each channel carries a public service remit, under section 73 of the UK Copyright Act, cable operators can re-transmit broadcasts live and uninterrupted without first seeking permission. Zattoo is effectively piggybacking the existing cable television provision.

Interestingly, along with pressure from the Beeb, Zattoo tells paidContent that it also paves the way for the service to launch a browser-based version alongside its existing desktop client. So in that sense, it may be partly a commercial decision, as presumably Zattoo doesn’t feel its legal defense holds enough water when competing with the BBC’s own browser-based iPlayer.

If that’s the case, could this also spell trouble for TVCathchup, which does precisely that. The company streams much of the UK free-to-air lineup of channels and it’s not clear which, if any, are formal licensing agreements.

It’s reported that Channel4 and Five are also unhappy with Zattoo carrying their content.

last100 is edited by Steve O'Hear. Aside from founding last100, Steve is co-founder and CEO of Beepl and a freelance journalist who has written for numerous publications, including TechCrunch, The Guardian, ZDNet, ReadWriteWeb and Macworld, and also wrote and directed the Silicon Valley documentary, In Search of the Valley. See his full profile and disclosure of his industry affiliations.